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ANA's blockbuster jet order includes good news for Boeing

Japanese carrier All Nippon Airways (ANA) announced a blockbuster deal for new airplanes Thursday, ordering a total of 70 new jets in a deal that would be worth $17 billion at list prices. ANA says the

ANA says the aircraft – a mix of long-range wide-body jets and smaller narrow-body planes – are to be delivered between 2016 and 2027, increasing the size of the airline's fleet to 250 aircraft.

The order comes as Japan gets ready for a rise in visitors that it anticipates ahead of the 2020 Tokyo Olympics.

"The aircraft we have selected will enable us to modernize and expand our fleet further as we seek to become one of the world's leading airline groups," ANA CEO Shinichiro Ito says in a statement. "These new aircraft will give us maximum flexibility and improved fuel efficiency and will allow us to meet the growth in demand, both internationally and in our domestic Japanese market."

ANA split its order between Boeing and Airbus, but the most-anticipated decisions in ANA's order appeared to tilt in favor of Chicago-based Boeing. In that order, ANA appeared to give a stamp of approval to Boeing's 787 Dreamliner, ordering more of the revolutionary jets despite problems that have cost ANA millions since it became the first airline in the world to fly the aircraft.

The order was watched closely to see if Airbus could continue to make inroads in Japan, a market where airlines have gone almost exclusively with Boeing during the past 70 years.

Or, as The New York Times put it: "While Boeing and Airbus compete fiercely in most countries, Japan had been almost a captive buyer of American planes since its reconstruction after World War II."

But ANA rival Japan Airlines (JAL) shook up that long-established order last October, going with Airbus' new A350 widebody in a 31-jet deal worth nearly $10 billion at list prices. The Wall Street Journal says "JAL's decision was considered a significant victory for Airbus, the European group that for years had tried to break into the lucrative Japanese market."

The Financial Times notes "Airbus has set a target of doubling its market share in Japan from 13% to 25% by 2020."

Against that backdrop, industry observers had been keenly watching to see which way ANA would go when it became time to order new jets.

Two items were of particular interest to industry observers. Would ANA would stick with Boeing's Dreamliners, despite its trouble with the jet? And, would ANA pick Boeing's new Boeing 777 model – the in-development 777-9X – or move to Airbus and its A350, as rival JAL did?

In its coverage of the ANA order, Reuters writes "Japan Airlines' decision to choose Airbus wide-body jets had raised expectations that ANA might also break with its exclusive use of Boeing jets for medium and long-haul flights."

But ANA stuck with Boeing on both accounts. The carrier ordered 20 of Boeing's 777-9xs as well as six of the current-model 777-300ERs. ANA also ordered 14 of Boeing's newer, bigger version of the Dreamliner – the 787-9.

By ordering more of the jet, Bloomberg News writes "ANA demonstrated its faith in a plane whose commercial debut with Japan's largest carrier ran more than 3 1/2 years behind schedule." The jet also was grounded for four months last year, costing ANA – and other Dreamliner operators – millions of dollars as the jets sat idle.

"Months of wooing by Boeing paid off as ANA agreed to buy 14 of the 787-9 model, 20 of the upgraded 777X jets due to debut at the end of the decade, and six current 777s to help bridge the gap," Bloomberg adds.

Despite the big orders for Boeing, Airbus was able to claim some progress in Japan as well. ANA went with the European jetmaker for 30 jets from the carrier's A320 family, ordering seven A320 neo aircraft and 23 A321 neos.

The News Tribune of Tacoma gives background on the order, writing: "The A320 Neo series aircraft are updated versions of Airbus' popular A320 single aisle planes. The plane features new fuel-efficient engines. Boeing's 737 Max aircraft are rivals to the A320 Neo series. The A321 Neo is a slightly larger version of the base A320 Neo."

The Financial Times labeled that as "another step forward by Europe's Airbus in the Japanese passenger jet market."